Works have begun on the estimated $590 million (USD 420 million) Hunter-Central Coast Renewable Energy Zone (HCC REZ) network infrastructure project that will allow for an additional 1.8 GW of new renewable generation and storage projects to connect to the New South Wales (NSW) grid.
Electricity distributor Ausgrid has partnered with state body EnergyCo to deliver the upgrades and will build, finance, operate and maintain the REZ network infrastructure.
The project includes upgrades to about 85 kilometres of existing powerline lines and upgrades to existing substations including the one at Kurri Kurri. Two new 132 kV substations will be built in Muswellbrook local government area at Sandy Creek and Antiene as part of the program.
The upgrade has an intended network capacity of 1 GW and is expected will allow for 1.8 GW of new renewable generation and storage projects to connect to the grid. Full capacity is expected by 2028.
The network infrastructure project is being touted as the first REZ project in Australia to upgrade existing distribution network poles and wires instead of building all new transmission lines.
“As Australia’s first distribution REZ, Ausgrid is proud to lead the way in demonstrating how we can play a key role in the energy transition,” Ausgrid Chair Helen Nugent said. “We look forward to our solution providing ongoing benefits for the Hunter region for generations to come.”
NSW Energy Minister Penny Sharpe said the HCC REZ, stretching from the Central Coast north to the Hunter, including Newcastle, Lake Macquarie and Port Stephens, and the associated network upgrade are central to the state government’s Electricity Infrastructure Roadmap, that calls for at least 12 GW of renewable energy backed up by 2 GW of storage by 2030 to ensure energy security as the state’s coal-fired power plants exit the grid.
“Upgrading this critical infrastructure is another step forward in securing clean, affordable and reliable energy for households and businesses as ageing coal-fired power stations retire,” she said.
The HCC REZ is one of five designated clean energy zones detailed in the state government’s electricity roadmap. REZs will also be developed in the Central West-Orana, New England, South-West and Illawarra regions. The NSW government has created five REZs: Central-West Orana, New England, Hunter-Central Coast, South West, and Illawarra.
The HCC REZ is expected to bring up to $3.9 billion in private investment, some 590 jobs during construction, and 220 ongoing jobs once operational.
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